What is a unit rate?
Last updated: 6 September 2026 · Figures from the current Ofgem price cap
Your unit rate is what you pay for one unit of energy, written in pence per kWh. A kWh is a kilowatt hour: roughly what an electric oven uses in half an hour. Under the July 2026 price cap the typical electricity unit rate is 26.11p per kWh and gas is 7.33p per kWh. Multiply that rate by the units you use and you have the usage half of your bill.
How it fits with the rest of your bill
Every energy bill is built from two charges. The standing charge is a fixed daily fee you pay whatever you do, currently around 57.19p a day for electricity. The unit rate is the part you control, because it only applies to the energy you use.
That’s why the unit rate is the number worth watching. Turn the heating down and the standing charge stays exactly where it is, but your unit costs fall.
What that looks like in pounds
Take a typical 3-bed home using 4,200 kWh of electricity and 11,500 kWh of gas a year. At the current cap rates, the usage part of the bill works out like this.
| Unit rate | Yearly usage | Usage cost | |
|---|---|---|---|
| Electricity | 26.11p | 4,200 kWh | £1097 |
| Gas | 7.33p | 11,500 kWh | £843 |
Source: Ofgem price cap, 1 July–30 September 2026. Usage cost only, before the standing charge. Unit rates vary by region and payment method.
Small differences matter more than people expect. On that electricity usage, a single penny per kWh is about £42 a year. A rate 3p above the cap costs roughly three times that before you have changed a thing about how you live.
Where to find it on your bill
Look in the charges section, on the row that lists your meter readings. The unit rate sits beside the number of kWh used, usually written as “p/kWh”. Suppliers label it differently: “unit rate”, “rate per kWh”, or just “price per unit”.
Watch for pounds where you expect pence. A few bills print £0.2611 rather than 26.11p for the same rate. If a figure looks a hundred times too small, that’s why.
Why some bills show two rates
If your bill lists a day rate and a night rate, you are on a multi-register tariff such as Economy 7. It charges less overnight and more during the day, with a separate meter reading for each.
These tariffs suit homes that genuinely shift usage into the cheap window, like storage heaters or an overnight car charge. If most of your energy goes in the evening, the higher day rate can leave you worse off than a single-rate tariff. Compare the day rate against the capped single rate before assuming you are ahead.
Is my unit rate too high?
Start by comparing yours to the cap: 26.11p for electricity, 7.33p for gas. Sitting a little either side of that is normal, because Ofgem caps the average rate across each of the 14 energy regions rather than the figure on any one bill. Payment method moves it too, with prepayment and standard credit priced differently from direct debit.
A rate several pence above the cap is worth a second look. It often means a fixed deal that has ended and rolled you onto a more expensive standard tariff. That happens quietly, and nothing on the bill announces it.
Common questions
What is a unit rate on an energy bill?
It's the price of one kilowatt hour (kWh) of energy, in pence. Under the July 2026 cap that's about 26.11p per kWh for electricity and 7.33p for gas. Multiply it by the units you use to get the usage part of your bill.
Why do I have two unit rates on my bill?
You're on a multi-register tariff such as Economy 7, which charges less overnight and more in the day. Your bill lists each register with its own reading and rate. Both are real prices, so judge them against when you use energy.
Is a lower unit rate always cheaper?
No. A tariff can pair a low unit rate with a high standing charge, or drop the standing charge and raise the unit rate. What counts is the two together against your own usage. For an average home the unit rate usually decides it, because usage is the bigger half of the bill.
Why is my unit rate higher than the price cap?
The cap limits the average rate across a region, not the exact figure on every bill. Rates vary by region, meter type and how you pay, and a fixed tariff signed earlier can sit above or below. A rate well above the cap is worth checking.
What's yours?
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